Australia’s digital technology clusters analysed

Australia’s digital technology clusters have been mapped and analysed for the first time in a report compiled by national science agency CSIRO and sector peak body the Tech Council of Australia.

‘The geography of Australia’s digital industries’ explores how the geographical concentration of innovation – as in Silicon Valley in California – boosts growth and productivity.

The report brings together data from across the nation to map and describe the range of digital technology clusters currently developing; it finds there are 96 digital clusters in Australia, across every state and territory.

According to the report, these clusters are engines of growth, accounting for 63% of all tech job creation despite only accounting for 4% of Australia’s land mass.

The report identifies four superclusters – mega groupings of specialist clusters: the Sydney arc, the Melbourne diamond, the Brisbane corridor and the Canberra triangle.

Understanding the factors that created these clusters was important as international research had established that they generated many benefits, CSIRO acting chief executive Kirsten Rose said.

“Experience globally has shown that firms in clusters grow, employ and innovate at a faster rate,” she said.

“We know comparatively little about this in Australia but what this report tells us very clearly is that geography matters, and understanding that geography can help us catalyse growth.”

The report’s lead author, CSIRO principal researcher Dr Stefan Hajkowicz said the research identified four capital city-based super clusters along the east coast as well as significant smaller clusters in cities such as Perth, Hobart and Darwin.

“The report has also noted the rise of highly specialised clusters in regional areas, for example we are seeing the rapid growth of the graphic design profession in coastal areas like Burleigh Heads,” Dr Hajkowicz said.

“We’re not searching for Australia’s Silicon Valley − we have our own clusters with their own unique blend of technology specialisations, companies, and cultures − but we do see the same patterns of intense spatial clustering of technology industry occurring in places like California (USA), Cambridge (UK), Toulouse (France) and other places worldwide.”

Australia also has 60 greater city clusters − single clusters in greater capital city areas that have large and diversified tech workforces and companies.

These have developed in areas such as Parramatta in Sydney, in  Northbridge in Perth, and in Hobart, Darwin and Adelaide.

Tech Council chief executive Kate Pounder said the identification of 36 regional specialist sector clusters – including in Noosa, Newcastle, Queanbeyan, Geelong and Torquay – proved that digital innovation can happen anywhere in Australia.

These regional centres have built up significant tech workforces, in  many instances specialising in one or two sectors.

”This research shows that great ideas and industries can spring up anywhere in Australia,” Pounder said.

“It’s an incredible achievement as a nation to have 96 different clusters spread around the country creating jobs and opportunity for a range of communities and workers.

“Giving a range of communities access to this opportunity is vital as this report highlights the benefits for communities of being in a cluster.

“Clusters account for 63 per cent of tech jobs in Australia.

“Given tech jobs are amongst the fastest-growing, best-paid and most flexible jobs in the country, it’s a great advantage for any community to have a cluster in their area.” she said.

Image: The cover page of the report includes a rendering of how Sydney technology cluster Tech Central will eventually look.